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  • Industry Watchers Beginning to Warm up to the Idea of "Beats by Apple"


    UBS analyst, Steven Milunovich, stated in a note to investors recently that it was sort of appropriate for Apple to surprise the market with its largest ever deal, known to Apple history. He noted that he’d like to hear Apple’s reason for the rumored purchase before investors form a strong opinion on the anticipated deal with Beats. Milunovich said that the $3.2-billion rumored price seems reasonable if Beats revenue is about $1.4 billion annually with high margins. Milunovich also feels that Beats Music will complement the somewhat success of iTunes Radio and the headphone designer will be able to strengthen future Apple products in the wearable device market. UBS analyst said that the company made an intelligent move in the past with the Mac and the Beats deal could possible do the same for music lovers.

    Apple has not promoted the brand of a company it has acquired, but it does have sub-brands: iPod, iPhone, iPad, Mac. People use the product name knowing Apple makes them. 'Beats by Apple' isn't all that different.
    When the announcement first broke last week about Apple possibly striking a deal with Beats, many initial reactions were negative with people saying the purchase of Beats didn’t fit in Apple’s typical business strategy. However, the rumored deal also has its supporters who believe the Beats Music service could be a worthwhile addition. Some supporters even go as far as saying Beats headphone business could provide immediate benefit to Apple with high-margin headphones.

    It has been speculated that Jimmy Iovine and co-founder Dr. Dre Young will be joining the Apple Team as part of the so-called “acqui-hire” agreement which is also in the $3.2-billion deal.

    Source: UBS via AppleInsider
    This article was originally published in forum thread: Apple Said to be Integrating NFC Technology in Next-Gen iPhone started by Akshay Masand View original post
    Comments 10 Comments
    1. DragonflyZ's Avatar
      DragonflyZ -
      The funny thing is the beats headphones are mediocre. The beats technology used in some HTC phones was ok but nothing stellar.
    1. dsg's Avatar
      dsg -
      beats headphones are bass heavy, not good for certain types of music
    1. peacedog's Avatar
      peacedog -
      Boom. And then a salad was made.

      Beet and Apple Salad Recipe : Food Network Kitchen : Food Network
    1. PokemonDesigner's Avatar
      PokemonDesigner -
      This is another piece of evidence that apple is trying to help "welfare users" waste their tax payer funded welfare on more stupid s***.
    1. Co1d Night's Avatar
      Co1d Night -
      God, no. I was going to buy a pair of these once I got back into DJing, guess that´s not happening.
    1. Ambi_Valence's Avatar
      Ambi_Valence -
      Quote Originally Posted by PokemonDesigner View Post
      This is another piece of evidence that apple is trying to help "welfare users" waste their tax payer funded welfare on more stupid s***.
      I must be dense. Please explain.
    1. steve-z17's Avatar
      steve-z17 -
      The last thing I want is a new MBP Retina Display with Beats audio...
    1. bigboyz's Avatar
      bigboyz -
      I think a lot of the negative comments are due to the fact that we don't know exactly how Apple plans to use this brand. Whether you like Beats or not, they are enormously popular everywhere. Since they are now aligned with Apple, I would think they will get better as for quality. Especially if Apple is going to incorporate them into iPhone launches etc. Have a little faith people.
    1. bigbaba's Avatar
      bigbaba -
      I'm thinking Apple is banking on keeping the same royalty rates that Jimmy Iovine negotiated for beats music. Each subscriber would need to listens to a few million songs a month to run up royalty fees of $15. With Jimmy as an exec this could give Apple the edge it needs to become competitive in the streaming market.
    1. DragonflyZ's Avatar
      DragonflyZ -
      Streaming music is meaningless to me. I have Sirius in my vehicles and all of my favorite albums on my phone. I have tried apple radio and pandora but would never pay to stream.